Oil prices rose in Asian trading Wednesday as traders monitored escalating tensions between the U.S. and Iran, while also eyeing potential demand from China's upcoming Lunar New Year holiday. Brent crude futures gained 0.6% to $69.18 per barrel, with West Texas Intermediate crude climbing 0.6% to $64.19.

Iranian officials signaled ongoing nuclear talks with Washington would continue after recent discussions, though U.S. warnings to ships in the Strait of Hormuz and reports of potential aircraft carrier deployments near Iran kept supply disruption fears alive. The uncertainty prompted traders to price in a risk premium amid concerns military action could disrupt Iranian oil exports.

Chinese officials expect a record 9.5 billion passenger trips during the nine-day Lunar New Year holiday beginning February 15, typically driving increased fuel consumption. However, deflationary pressures persist in China's economy, with consumer price index inflation missing market expectations while remaining in contraction territory. The combination of geopolitical risks and holiday demand expectations provided support for oil prices despite broader economic concerns.